The Indian government is reportedly considering Moscow’s proposal to turn to the Russian payment system, which allows direct rupee-ruble transfers in bilateral trade.
The mechanism developed by the Russian central bank is expected to boost commerce between the two countries by avoiding dollar-denominated trade, and allow the world’s third biggest oil consumer to continue purchases from Russia, bypassing Western sanctions.
The scheme involves rupee-ruble-denominated payments via Russia’s messaging system, SPFS. The final decision is expected to come after a two-day visit of Russian Foreign Minister Sergey Lavrov to India, according to unnamed people with knowledge of the matter, as quoted by Bloomberg.
Lavrov’s visit to India is scheduled for Thursday, and Russian central bank officials will reportedly visit the country next week to discuss the details.
According to Bloomberg’s sources, the Reserve Bank of India regularly meets with executives from the country’s banking system to discuss matters such as exposure to Russia and risks from the latest sanctions.